Diamond Power workers agree to negotiate until Sept. 24

LANCASTER – Diamond Power management and United States Steelworkers Local 4708 workers have agreed to extend talks on a three-year contract to Sept. 24, union president Spencer Terrel said.

He said the union voted to strike over the weekend after rejecting what he called the company’s best and last offer, before the sides agreed to the extension. Terrel said the company wants the workers to take a wage freeze, pay more for their benefits and bring new workers in at a defined contribution plan.

He said negotiations are not hostile and that the union just wants a fair deal to replace the former five-year contract.

“The company says it’s profitable but that it needs concessions to be more competitive,” Terrel said.

Babcock & Wilcox owns Diamond Power. Spokesman Ryan Cornell said the company is optimistic the two sides can reach a deal with the 110 workers in the fossil power unit. He said the company has already reached contract agreements with workers in the controls and diagnostic units and those who work in the ash handling equipment unit.

“We are offering a contract that allows Diamond Power to be competitive in a coal-powered market under significant financial and regulatory pressures,” he said.

Cornell said he expects the union will take another contract vote on Sept. 24 following the extended negotiations. He said he could not discuss specific issues, but said the issues are related to wages and benefits.

In a related issue, Terrel said the company plans to send 57 jobs from the control and fossil units to Mexico by the end of next year, but Cornell said he could not comment on that.

The Diamond Power website said the company has been headquartered here since 1950 and has 500 employees in the U.S. and 1,500 worldwide. The company dates to 1903 and specializes in boiler cleaning and ash handling.

jbarron@lancastereaglegazette.com

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